Chicago, Illinois: Walgreens has reached a settlement with the US Department of Justice to pay up to $350 million to resolve allegations of illegally filling millions of prescriptions for opioids and other controlled substances over the last decade. The nationwide drugstore chain will pay the government a minimum of $300 million and an additional $50 million if the company undergoes any ownership changes before 2032.
The government’s complaint, filed in January in the US District Court for the Northern District of Illinois, accuses Walgreens of knowingly filling illegal prescriptions for controlled substances between August 2012 and March 2023. This includes prescriptions for excessive opioids and those filled significantly earlier than necessary.
Despite Walgreens’ denial of any wrongdoing, the settlement will help the company close all opioid-related litigation with federal, state, and local governments. This resolution comes as Walgreens focuses on implementing a turnaround strategy to combat slumping store visits and shrinking market share. Last October, the company announced the closure of 1,200 stores nationwide.
As part of the agreement, Walgreens must improve its compliance with rules surrounding dispensing controlled substances and maintain policies requiring pharmacists to confirm the validity of such prescriptions. Additionally, the company will establish and maintain a compliance program, including training and reporting to the US Department of Health and Human Services regarding its dispensing of controlled substances.
Attorney General Pamela Bondi emphasized the importance of pharmacies prescribing controlled substances safely and professionally, rather than dispensing dangerous drugs for profit. The settlement also resolves four cases brought by former Walgreens employees turned whistleblowers.
The agreement with Walgreens is part of a larger effort by the US government to hold pharmaceutical companies accountable for their role in fueling the opioid crisis. Over the past eight years, drugmakers, wholesalers, and pharmacies have agreed to over $50 billion in settlements with governments, with funds allocated to combating the opioid epidemic.